The unadjusted Allowance for Doubtful Accounts has a $100 credit balance. The aging of accounts receivable...

 

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The unadjusted Allowance for Doubtful Accounts has a $100 credit balance. The aging of accounts receivable is as follows: Customer: Sue Age 0-30 days 30-60 days60-90 daysover 90 days $2,000 Tom Mato $400 Ima Rich $5,000 All others not shown to save space 15,000 Total Accounts Receivable $10,000 $20,000 $10,000 $1,000 600 $2,000 Management estimates that 1% of receivables under 30 days, 5% of 30-60 days receivables, 10% of 60-90 days receivables and 50% over 90 days receivables will be uncollectible. Using the aging of accounts receivable method, the debit to Bad Debt Expense and credit to Allowance for Doubtful Accounts equals The unadjusted Allowance for Doubtful Accounts has a $100 credit balance. The aging of accounts receivable is as follows: Customer: Sue Age 0-30 days 30-60 days60-90 daysover 90 days $2,000 Tom Mato $400 Ima Rich $5,000 All others not shown to save space 15,000 Total Accounts Receivable $10,000 $20,000 $10,000 $1,000 600 $2,000 Management estimates that 1% of receivables under 30 days, 5% of 30-60 days receivables, 10% of 60-90 days receivables and 50% over 90 days receivables will be uncollectible. Using the aging of accounts receivable method, the debit to Bad Debt Expense and credit to Allowance for Doubtful Accounts equals

Answer rating: 100% (QA)

To calculate the debit to Bad Debt Expense and the credit to Allowance for Doubtful Accounts using t... View the full answer